Synlait secures $470 million in bank refinancing

Synlait Milk Limited has successfully completed its planned bank refinancing, securing new funding arrangements with a working capital facility of $240 million and revolving credit facilities of $230 million.

The company is also required to make a prepayment of at least $130 million by March 2024.

Synlait's new banking syndicate members include ANZ, Bank of China, China Construction Bank, HSBC, and Rabobank.

The company confirms that its FY23 performance remains within the previously announced net profit after tax guidance range and that The a2 Milk Company's recent announcement is not expected to impact its FY24 results.

Synlait disputes The a2 Milk Company's right to cancel exclusivity arrangements under the Nutritional Powders Manufacturing and Supply Agreement (NPMSA) and states that the NPMSA remains in place but may be terminated by either party on three years' notice.

Synlait holds the necessary Chinese regulatory license to manufacture products for The a2 Milk Company for the China market until September 2027.